Another way of insuing loan payments.... Valid?

lmv_3

So, I need a loan for a car. Northern Rock are best rate at 5.7% and I get approved. But on a repayment of around 160 quid they were talking about charging 20+ quid/month for payment protection insurance! I think not...

After avoiding the hard sell from the NR phone guy who couldn't understand why I don't want their PPI, they sent the papers with a "waiver" to sign saying I understood my payments weren't protected.

Off to Burgess et. al. to get independant insurance but, bummer, they decide my occupation (I.T. related) is too much of a risk. Despite being empolyed by the same company for 8 years...

Then my Nationwide mortgage needs renegotiating and the PPI for that needs renewing. In the unlikely event etc. they pay the mortgage (to the insured value) direct but you can also insure some "income" for paying bills etc. Now, this comes in at abour £4 per £100 insured. So surely £8/month would cover my loan repayment (to the same extent/conditions as Burgess etc.) and cover some direct debits for bills... I can't see anything in the print that says _what_ this payment can be used for. I asked Nationwide and they just said "it's paid to you direct"...

So... If you can't get independant loan PPI and you have a mortgate with this kind of deal it might be worth checking out.

Apologies if this is old news to seasoned bargain hunters